06 March 2009

Deflation's Latest Enemy - £150bn For UK

The Bank of England has finally been given the go-ahead to begin quantitative easing - a process whereby new money is injected into the country in an attempt to artificially start growth for the economy.

The move coincided with the latest interest rate cut which has now taken the rate to 0.5 per cent - once again, the lowest ever level.

While the Bank hopes that quantitative easing will quick-start the economy from its relative standstill, some are concerned that the move is not necessary, especially given the rate of inflation is still above target.

Europe's central bank have not ruled out quantitative easing but are no way near implementing the move just yet।

What does this latest action mean for the future of Britain's currency?